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Xenos Reports Second Quarter and First Half Results
TORONTO, Ontario, May 9, 2008 Xenos Group Inc. (TSX:XNS), today reported net income of $247,000 in the second quarter and net income for the first six months of fiscal 2008 of $775,000 or approximately $.08 per share.
Xenos revenues for the second quarter ended March 31, 2008 rose to $3,805,000 as compared to revenues of $3,720,000 for the same quarter last year. Revenues for the six months ended March 31, 2008 were $7,954,000 as compared to $7,651,000 for the first six months of fiscal 2007.
Xenos reported a significantly improved EBITDA of $979,000 for its first half as compared to EBITDA of $460,000 for the six months ended March 31, 2007.
Total expenses were reduced to $5,717,000, from $6,530,000 in the first half of fiscal 2007. Sales and marketing expenses were reduced to $2,419,000 for the first six months of the year from $2,930,000 last year.
Comparative results and revenues for the first two quarters were impacted by the relative strength in the Canadian dollar against our major trading currencies, particularly the US dollar. The CAN$/US$ closing rate at the end of the second quarter was $0.974 compared to $0.866 at the end of the second quarter last year, an increase of 12.5%. Revenue generated in US dollars represented the majority of revenues earned in the first half of the year. Xenos did however benefit from a foreign exchange gain of $212,000 for the first six months compared to a loss of $27,000 in the same period last year.
The second quarter continued the trends of both year-over-year revenue growth (7th consecutive quarter) and improved EBITDA (6th consecutive quarter).
At the half way point in the year, the Company is substantially on target to meet its overall financial objectives for the year, and its priority software development objective, initial release of the code-named Xenos Enterprise Server (“XES”). The beta release program with select customers is planned for the fourth quarter of this fiscal year, with the public release by October 1, 2008.
“We designed XES in response to our customers’ business and technical requirements for a solution currently unfulfilled in the marketplace. They wanted to rationalize how to integrate, translate, repurpose, route, archive and deliver actionable business information throughout the enterprise and beyond. By providing data and document transformation as an enterprise service, XES enables the adoption of a cost-effective enterprise information architecture tailored to meet business and green IT objectives without the constraints imposed by incompatible hardware or software platforms and disparate data and document formats,” said Stuart Butts, Chairman and CEO of Xenos.
At March 31, 2008, Xenos held cash of 8,248,000 or $.82 per common share (and no significant long-term debt), compared to $7,357,000 or $.74 at September 30, 2007.
Printable Version with Financial Highlights (PDF: 60 KB)
Conference Call Notice
A conference call for shareholders, analysts and other members of the investment community has been scheduled for Friday, May 9 at 10:00 a.m. Eastern Time. Stuart Butts, Chairman, President and Chief Executive Officer, and George Kypreos, Chief Financial Officer, will discuss the financial results and provide updates on operations. To participate, please dial 416-644-3416, or 1-800-814-4862 approximately 10 minutes before the conference call.
The conference can also be heard over the Internet at the company’s website. www.xenos.com
A recording of the conference call will be available through May 16. Please dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21271208, followed by the number sign, to listen to the rebroadcast. The call will also be archived for 30 days on the Xenos website.
About Xenos
Xenos (TSX:XNS) high-performance software solutions streamline enterprise information supply chains. We enable our customers to process, transform, repurpose, personalize and deliver their data and documents when they need it, where they need it and how they need it. Xenos extends the value of existing IT investments, enabling organizations to increase efficiency, agility and accountability, while supporting Green IT initiatives.
By streamlining, standardizing and automating the handling of information on demand, our customers reduce costs while increasing a powerful competitive advantage—adaptability. Xenos has customers worldwide in financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors. Xenos sells and supports its solutions directly from offices in Canada, the United States, the United Kingdom and France and through a global partner network. Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.' For more information, visit
www.xenos.com or contact:
For more information, please contact:
| Cory Pala Investor Relations Tel: +1 (416) 657-2400 Fax: +1 (416) 657-2300 E-mail: cpala@xenos.com |
George Kypreos Chief Financial Officer Tel: +1 (905) 709-1020 Fax: +1 (905) 709-1023 E-mail: gkypreos@xenos.com |
Certain statements made in this press release are forward-looking within the meaning of certain securities laws. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or developments in the Company’s business or its industry to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. The Company urges you not to place undue reliance on these estimates, opinions and projections. The Company assumes no obligation to update forward-looking statements if assumptions or these plans, estimates, opinions or projections should change.
The Company uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with GAAP. EBITDA is not a recognized measure under GAAP and should not be construed as an alternative to net income (loss). Xenos' method of calculating EBITDA may differ from other companies and accordingly may not be comparable to measures used by other companies.
Cash per share is a non-GAAP measure and is calculated by dividing the cash and cash equivalents by the number of common shares outstanding.
© 2008 Xenos Group Inc. All rights reserved.
Printable Version (PDF: 60 KB)
